The stock market continues to bug me this year. Without any startlingly obvious opportunities in which to invest in clearly undervalued companies, I've been sitting on the sidelines of late, watching my Apple and Salesforce.com stocks churn well below my entry points, and keeping the rest in cash. But that's dull, and it's time to start taking more risks and seeing if I can flip some momentum plays for short-term cash.
This week's candidate was Sirius Radio. I don't own a satellite radio and don't think I ever will, barring any chance I moved far away from the A's flagship stations and wanted to always have access. But Sirius is one of the top two leaders in the space, and its stock is well off 52-week highs. So on Tuesday, I took my cash and jumped into the stock at $4.00 even. Flat on Tuesday, it jumped about 3 to 4 percent on Wednesday, and after a few pennies rise this morning, it was trading at the 4.23 level or so, up 5 plus percent in two days.
Not caring about whether I held it for any length of time, and not convinced it would continue to appreciate, I took my smallish gains and dumped it this afternoon for a quick few hundred bucks profit. It's money I didn't earn, but I have it now, and I'll stay on the prowl for the next thing, whatever that may be. And for the record, after selling at 4.22, the stock closed at 4.19 today. We'll see if my quick trade made any sense.
Listening to ''Tom's Diner (7" A)'', by DNA & Suzanne Vega (Play Count: 4)